Empirical Study Of China's Auto Industry Intra-industry Trade

This paper discusses China's auto industry intra-industry from two aspects. One is retrospection on theories of intra-industry trade and empirical study of China's auto industry intra-industry trade. Based on these studies, this paper reveals the current status and problems of China's auto industry intra-industry trade; secondly, the paper discusses the two elements for intra-industry, that are differentiated goods and scale economies. Through empirical and theoretical studies, the paper makes the conclusion that China's auto industry must pay attention to innovation and scale economy. Only by this can China's auto industry change its backward and unbalanced status, and furthermore become the impetus of the whole economy.